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GKCA Update 1st to 31st Oct Starred Articles 04 HDFC enters into partnership with Indian oil to set up banking services in rural India Oct Bank Specific > Bank News HDFC bank has tied up with Indian Oil to utilize its Kisan Seva Kendras (KSKs) as the Bank's Business Correspondents (BCs). The KSKs are Indian Oil’s petrol outlets. The bank plans to take in its fold 1000 KSKs through a phased manner and provide its services to a platform of 1,500 customers. This merger will utilise HDFC’s services and Indian Oil’s distribution network. The KSKs will provide primary processing of loan applications, disbursal and collection of small value deposits, sale of micro-insurance, mutual funds and other investment instruments. 04 Another successful test firing of Nuclear Capable Prithvi II Oct India > Defense India successfully test-fired the Prithvi-II missile on Thursday. The test was carried out at Chandipur in Odisha. The surface-to-surface missile, which carried conventional explosives and can be armed with nuclear warheads, travelled its full range of 350 km before plunging into the Bay of Bengal. India started its Integrated Guided Missile Development Program in 1983 to achieve self-sufficiency in the development and production of a wide range of missiles. Prithvi was the first missile to be developed under the Program. DRDO attempted to build a surface-to-air Missile under Project Devil. Prithvi II class is a single stage liquid-fuelled missile having a maximum warhead mounting capability of 500 kg. It was developed with the Indian Air Force being the primary user. The Army is already armed with this missile. 04 Cabinet allows 49% FDI in insurance & starts FDI in pension Oct Economy > FDI The Union cabinet has increased the FDI Cap in Insurance and allowed FDI in Pension. This is the latest development in the spate of reforms introduced by the government to streamline the Indian economy and boost long term GDP growth. FDI cap in Insurance has increased to 49% compared to the earlier 26% while FDI has been allowed in Pensions up to 26%. At the same time, the government has also gone ahead with the long-pending Companies bill, 2011. Termed as ‘Big bang reforms’ by the media, they will still need Parliamentary ratification as they are governed by an act of law and not an executive domain. Once introduced in the parliament a parliamentary standing committee headed by BJP leader Yashwant Sinha will scrutinize these bills. However, this looks a little difficult after Trinamool Congress' exit from the UPA government as the government needs to have absolute majority in the parliament to pass these bills. Page 1 of 29 GKCA Update 1st to 31st Oct 08 Indian Air Force puts women in combat roles Oct India > Defense Indian Air Force has decided to put two of its women Flight Lieutenants in combat roles. They will be trained in bombing, rocket attack, combat search and rescue, and special heli-borne operations. In 1992, the Indian defense forces first began intake of women in roles other than as doctors and nurses. As an officer inducted in the Women Special Entry Scheme (WSES), they could serve for a period of five to 14 years. This is a step towards implementing the Delhi HC March 2010 directing the government to grant permanent commission to 50 women officers. 08 IMF reduces India growth outlook Oct Economy > IMF India was hit by possibly its worst growth outlook cut, with the International Monetary Fund (IMF) slashing its forecast for calendar year 2012 to 4.9 per cent from 6.2 per cent in July. The IMF mentioned red tape, weakening business sentiment, a rising current account deficit and the rupee’s depreciation for the cuts in forecasts. Inflation added to India’s woes as unlike the rest of Asia, where inflation is expected to fall, price pressures in India were elevated. The biggest casualty may be foreign institutional investment (FII) in Indian equities. Expectations for a slowdown in India as well as China has led the IMF to shave its growth projections for developing Asia to 6.7 per cent from 7.1 per cent in July. The growth forecast for next year was trimmed to 7.2 per cent from 7.5 per cent. Page 2 of 29 GKCA Update 1st to 31st Oct 08 Haroche and Wineland win 2012 Nobel Prize for Physics and Sir John B. Oct Gurdon and Shinya Yamanaka for medicine Awards > Nobel Prize Haroche and Wineland win 2012 Nobel Prize for Physics Serge Haroche of France and David Wineland of the US have won the Nobel Prize for work in quantum physics that could one day open the way to revolutionary computers. The pair is being honoured for their pioneering optical experiments in "measuring and manipulation of individual quantum systems," the Nobel Physics jury said in its citation. Serge Haroche (born on 11 September 1944 in Casablanca, Morocco) is a French physicist. Since 2001, Haroche has been a Professor at the College de France and holds the Chair of Quantum Physics. David Jeffrey Wineland (born on February 24, 1944) is an American physicist at the National Institute of Standards and Technology (NIST) physics laboratory and the University of Colorado in Boulder. The two scientists specialize in quantum entanglement, a phenomenon of particle physics that has been proven by experiments but remains poorly understood. Sir John B. Gurdon and Shinya Yamanaka win Nobel Prize for medicine The discovery of mature cells that can be reprogrammed to become pluripotent helped Sir John B. Gurdon and Shinya Yamanaka to bag the coveted Nobel Prize in Physiology or Medicine 2012. Sir John Bertrand Gurdon, (born on 2 October 1933) is a British developmental biologist and is known for his research in nuclear transplantation. Shinya Yamanaka (born on September 4, 1962) is a Japanese physician and researcher of adult stem cells. He is serving as the director of Center for iPS Cell Research among holding other positions. Page 3 of 29 GKCA Update 1st to 31st Oct 08 Government expects to earn Rs 30k cr from 2G levy Oct Politics & Government > 2G Spectrum A panel comprising cabinet ministers has approved a one-time levy on telecom companies holding excess 2G spectrum, making way for a Rs 30,000 crore for the government exchequer. Several companies - ranging from Bharti Airtel to BSNL and Reliance - may be hit by the move. Government Panel recommends changing tax law prospectively, not retrospectively A government panel has recommended that tax be levied prospectively rather retrospectively in the case of foreign companies undertaking mergers and acquisitions. The retrospective tax changes were introduced in the 2012-13 union budget. This might spell relief for telecom giant Vodafone. Vodafone acquired Hutch in 2007 and earlier faced the prospect of paying Rs. 13,000 crore in capital gains tax. 09 Air India set to hit market with bond issue Oct India > Aviation Post receipt of unconditional guarantee from the government on its fund raising exercise, Air India is expected to hit the market with a bond issue worth Rs 7,400 crore. After delayed approval from the finance ministry, this development is expected to see the light of the day within a fortnight. The delay on the bond issue came as the finance ministry stated that the airline would be given only 'conditional guarantees' if it managed to achieve specific parameters. Air India however, wanted sovereign guarantees as they would reduce the interest paid on its long term debt and working capital loans. Until Oct 1, 2012 the airline was under a Financial Restructuring Plan (FRP), due to which it was only able to pay Rs 25-30 crore as interest every month. Now onwards, the airline is scheduled to pay Rs 100 crore every month. 09 Mondelez acquires Cadbury India Oct Corporate > Cadbury Cadbury India has a new corporate identity after being acquired by Mondelez International. The names of Cadbury products will remain unchanged despite the acquisition. Mondelez International's name will be mentioned on the back of the pack. Cadbury was acquired by Kraft Food in early 2010. Mondelez has also bought over Tang and Trident from Kraft Foods in addition to Cadbury. Page 4 of 29 GKCA Update 1st to 31st Oct 14 Baumgartner breaks world record: jumps from the edge of space Oct World > Records Felix Baumgartner, Austrian sky diver, broke the world record by jumping from the edge of space on Sunday, October 14. He rose to the altitude of 128,000 feet above the earth to drop faster than the speed of sound. Nicknamed ‘Fearless Felix’ by the media, Baumgartner rose in a capsule attached to a huge helium balloon achieving 24 miles altitude and then made history. Baumgartner had been preparing for the same from the last five years with the help of Col. Joe Kittinger, whose record Baumgartner broke. He maximized his speed by crouching in ‘delta’ position, but was bothered by fogging of his visor in the third minute. However, the skydiver was able to free fall for 4 minutes 20 seconds before deploying the parachute. An elated Baumgartner pumped his fists towards the sky after completing the feat. 14 Nobel Peace prize for the European Union Oct Awards > Nobel Prize This year’s Nobel peace prize has been awarded to the European Union. The European Union has been instrumental in bringing peace and to the continent from the last fifty years helping it rise from the aftermath of World War II. The 27 nation European Union came into being in 1991. It succeeded the European Economic Community (EC) when it was expanded from being an economic community to coordinating policy on asylum, immigration, drugs and terrorism.